Greggs to open 160 more shops in 2024 while keeping prices on hold

After ending 2023 on a high note, Britain's biggest bakery chain Greggs is set to open 160 more shops this year. The firm, known for its sausage rolls and steak bakes, recorded a 9.4% jump in like-for-like sales across its own-managed shops in the fourth quarter, with comparable store growth of 13.7% overall in 2023, helping send shares up nearly 10% in Wednesday early trading.

Roisin Currie, the chief executive, said: “We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet. Our value-for-money offer, and the quality of our freshly prepared food and drink continue to evolve and position us well for further progress in the year ahead.”

She reportedly said the firm currently has no plans to increase prices across it ranges as it expects a more stable cost base over the year ahead. However, she said it would be "a long time before we see deflation" that would allow the group to start reducing prices, with retailers among those facing higher wage bills due to increases in the national living wage. But she said rising wages was also “good news as it puts more money into consumers pockets”.

Over the course of 2023, the firm launched a record 220 new stores, but it also closed 33 and relocated 42, leaving it with a net total of 2,473 sites. The company has announced plans to establish 160 additional stores in an effort to provide customers with easier access to its shops. It also plans to continue growing into retail parks, travel destinations, roadside spots, and industrial estates.

Additionally, it plans to continue rolling out evening opening hours on a targeted basis across stores, with extended hours currently available in around 1,200 shops. Greggs said that there was less of a contribution from price inflation, which explains the final quarter performance's decline from the 14.2% gain observed in the preceding three months.

It said despite bringing back the vegan steak bake and expanding its Christmas offerings to include its festive bake, chocolate orange muffin, and Christmas lunch baguette, it was still seeing a lot of demand for vegan options.